Raipur: The Enforcement Directorate (ED), Raipur Zonal Office, has provisionally attached movable and immovable properties worth approximately Rs 31.70 crore in connection with the alleged misappropriation of District Mineral Foundation Trust (DMFT) funds in Chhattisgarh, IANS reported on Saturday, citing an ED press note. The agency also filed a supplementary charge sheet on October 30 before the Special Court (PMLA) in Raipur against 17 accused, including Satpal Singh Chabda and Mandip Chawla, for offences under the Prevention of Money Laundering Act (PMLA), 2002.

Source: IANS via HiIndia

The provisional attachment order was issued on October 29 under the PMLA. According to the ED, the case stems from the systematic diversion of DMFT funds — money meant for the welfare and development of mining-affected areas and communities — through the Chhattisgarh Rajya Beej Evam Krishi Vikas Nigam (Beej Nigam). The agency alleges that a well-organised syndicate involving public servants and agents or liaisoners manipulated the allocation and utilisation of the funds, favouring supply-oriented works with inflated procurement costs.

Source: IANS via HiIndia

Rs 31.70 croreProperties provisionally attached by the ED
Rs 35 croreProceeds of crime quantified by the ED, as alleged
17Accused named in the supplementary charge sheet filed Oct 30
25%–50%Alleged commission extracted on purchase-order values

The ED alleges that illegal commissions ranging from 25 per cent to 50 per cent of the base value of purchase orders were extracted from rate-contract holder entities, and that a substantial portion was passed on to public servants and influential persons in return for facilitating fund allocation, purchase orders and release of payments. Commissions were allegedly collected in cash and through banking channels and layered via multiple entities and accounts; similar commissions were also allegedly siphoned from Beej Nigam procurements made with non-DMF funds, the agency said.

Source: IANS via HiIndia

Chabda has been identified by the ED as one of the main liaisons and financial coordinators of the alleged syndicate, accused of facilitating work allocation to selected vendors, issuance of purchase orders, release of payments, and the collection and distribution of commissions. He was arrested on September 1 under Section 19 of the PMLA. So far, four accused, including IAS officer Ramu Shau, have been arrested in the matter, IANS reported. A second report of the same ED action, published Saturday evening, carried the same attachment figure, the same Rs 35 crore proceeds estimate and the same arrest count.

Source: Daily Kiran

The investigation began on the basis of FIRs registered by the Anti-Corruption Bureau/Economic Offences Wing, Raipur, under the Prevention of Corruption Act and the Indian Penal Code, with additional FIRs from Kanker district and Raipur also clubbed into the ED's case. The ED said further investigation into the roles of government servants and other agents in the alleged misuse of DMF funds, collection and distribution of commissions, and laundering of proceeds is continuing. The accused have not been convicted; the allegations will be tested in court.

Source: IANS via HiIndia